Malaysian PM’s first official visit to India seeks to strengthen bilateral ties

New Delhi, Aug 20: During his first official visit to India since assuming office, Malaysian Prime Minister Anwar Ibrahim was warmly welcomed by Indian Prime Minister Narendra Modi, who highlighted the significance of the visit at the start of his third term.

Modi expressed gratitude for Anwar Ibrahim’s friendship and commitment to enhancing bilateral relations. The visit, he said, has set a new direction for India-Malaysia relations for the coming decade. As a testament to their deepening ties, the two sides signed eight key agreements, including a crucial memorandum of understanding (MoU) on recruitment and employment conditions for Indian workers, and agreed to work on connecting India’s UPI with Malaysia’s PayNet for digital transactions.

Modi underscored the strong ties between the two nations, emphasizing that the Enhanced Strategic Partnership between India and Malaysia is now entering its tenth year, with new momentum and energy infused over the past two years under Anwar’s leadership.

In their extensive discussions, both leaders reviewed various areas of mutual cooperation, particularly in the realm of trade and investment. Modi noted that bilateral trade is steadily progressing, with a significant development allowing transactions between the two countries to be settled in Indian Rupees (INR) and Malaysian Ringgits (MYR). Last year alone, Malaysian investments in India amounted to $5 billion, marking a substantial economic engagement.

The two nations agreed to elevate their relationship to a “Comprehensive Strategic Partnership,” reflecting the untapped potential in their economic collaboration. Modi emphasized the need to expand bilateral trade and investment, particularly in emerging technologies such as semiconductors, fintech, defence, artificial intelligence (AI), and quantum computing. The leaders also agreed to expedite the review of the Comprehensive Economic Cooperation Agreement (CECA) between India and Malaysia, aiming for a more robust economic framework.

To further deepen cooperation, the establishment of a Digital Council and a Start-up Alliance was announced, focusing on digital technology collaboration. Additionally, efforts are underway to integrate India’s Unified Payments Interface (UPI) with Malaysia’s Payments Network (PayNet), a move that could revolutionize digital transactions between the two countries. The CEO Forum, held concurrently with the visit, highlighted new opportunities for bilateral cooperation in the defense sector, further solidifying their strategic partnership.

India and Malaysia share a deep historical connection, with nearly 3 million Indian expatriates in Malaysia serving as a living bridge between the two nations. This cultural bond is reflected in various aspects of Malaysian society, from Indian music, food, and festivals to landmarks like the “Toran Gate.” Modi recalled the success of the ‘P.I.O. Day’ celebrated in Malaysia last year, a testament to the enduring friendship between the two countries. The installation of the Sengol in India’s new Parliament House also resonated with the Indian community in Malaysia, symbolizing the shared cultural heritage.

On the employment front, a new agreement on worker recruitment was signed, aimed at protecting the interests of Indian workers in Malaysia. Simplified visa procedures will facilitate easier movement of people between the two nations, and a renewed emphasis is being placed on educational and training exchanges. Notably, 100 seats will be exclusively allocated for Malaysian students under India’s ITEC Scholarships, focusing on cutting-edge courses like Cyber Security and AI. Furthermore, an Ayurveda Chair is being established at Universiti Tunku Abdul Rahman in Malaysia, and a Tiruvalluvar Chair will be set up at Universiti Malaya, marking significant academic and cultural exchanges.

Malaysia’s role as a key partner in ASEAN and the Indo-Pacific region was also acknowledged. Modi reaffirmed India’s commitment to ASEAN centrality and expressed support for Malaysia’s upcoming ASEAN Chairmanship in 2025. Both leaders agreed on the importance of completing the review of the Free Trade Agreement (FTA) between India and ASEAN promptly. They also reiterated their commitment to freedom of navigation and overflight by international laws, advocating for the peaceful resolution of disputes.

The signed agreements span a range of sectors, including:

MoU on Recruitment, Employment, and Repatriation of Workers: Ensuring the protection and welfare of Indian workers in Malaysia.

MoU on Cooperation in Ayurveda and Traditional Medicine: Promoting collaboration in traditional health systems.

MoU on Digital Technologies: Establishing cooperation in the digital sector.

Cultural Program Agreement: Enhancing cooperation in culture, arts, and heritage.

MoU on Tourism Cooperation: Boosting tourism exchanges.

Youth and Sports Cooperation: Fostering collaboration in youth affairs and sports.

Public Administration and Governance Reforms: Sharing best practices in governance.

Financial Services Cooperation: Facilitating mutual cooperation between financial regulatory authorities.